Houston enjoys a reputation for affordable housing, but according to Rice University’s Kinder Institute for Urban Research, incomes are not keeping pace with rental and homeownership costs. The institute’s 2026 State of Housing
in Harris County and Houston report finds many residents are spending more of their income on housing, leaving less for other critical needs like food and transportation.
“It’s getting worse,” said Michelle Smirnova, director of the institute’s Center for Housing and Neighborhoods. “Houston values its identity as a place where you can afford to live. However, an increasing number of residents are finding this is not their experience. Housing is a major factor.”
Rising housing costs and their impact upon Houston-area residents is a theme seen throughout the report.
Key findings
- Rent is growing faster than inflation.
- More than half of renters are cost-burdened, meaning they spend more than 30% of their income on rent.
- Roughly one-quarter of homeowners are similarly cost-burdened.
- Homeownership among Houston’s Black residents declined at a record rate, down almost 16% and nearly erasing all gains made since 2020.
- Insurance premiums are increasing faster than home values.
“Even with home prices and rents increasing less than they were in the post-pandemic surge, we’re still finding that renters and owners are cost-burdened because of stagnating wages and the rising cost of everything beyond housing,’” said Steve Sherman, Kinder Institute researcher and the report’s main author.
This year, the State of Housing Report is accompanied by a housing dashboard developed in partnership with Harris County and the city of Houston. Updated twice a year, the interactive tool provides critical data on housing costs, household characteristics, subsidized and unsubsidized affordable housing, demographics and affordable housing.